TESCO boss Sir Terry Leahy has launched a stinging attack on City investors for failing to act in the best interests of Britain’s public companies.
Writing in today’s Times, Leahy said shareholders would benefit from becoming more engaged with the firms they invest in.
This would also free up managers from dealing with the goals of short term investors and allow them to create more wealth in the long-run.
He said: “Many investors don’t want to get under the skin of the business or don’t have the patience for long-term value creation.
“While executives may invest many years... in one company, investors may consider that a long-term interest in a company lasts only a year or two.”
City A.M. Reporter